Earnings (Loss) per Share ("EPS")

12 Months Ended

Dec. 31, 2023

Basic EPS of Class A common stock is computed by dividing net income (loss) attributable to the Company by the weighted average number of shares of Class A common stock outstanding during the period. Diluted EPS of Class A common stock is computed similarly to basic EPS except the weighted average shares outstanding are increased to include additional shares from the exchange of Class B common stock under the if-converted method and the assumed exercise of any common stock equivalents using the treasury stock method, if dilutive. The Company’s restricted/performance stock units are considered common stock equivalents for this purpose.

All earnings prior to and up to January 26, 2021, the date of the IPO, were entirely allocable to non-controlling interests and, as a result, EPS information is not applicable for reporting periods prior to this date.

Consequently, only the net income (loss) allocable to Shoals Technologies Group, Inc. from the period subsequent to January 26, 2021 is included in the net income (loss) attributable to the stockholders of Class A common stock for the period ended December 31, 2021.

Basic and diluted EPS of Class A common stock have been computed as follows (in thousands, except per share amounts):


	Year Ended December 31, 2023		Year Ended December 31, 2022		Period from January 27, 2021 to December 31, 2021
Numerator:
Net income (loss) attributable to Shoals Technologies Group, Inc. - basic	$	39,974	$	127,611	$	(327)
Reallocation of net income attributable to non-controlling interests from the assumed exchange of Class B common stock	—		15,402		—
Net income (loss) attributable to Shoals Technologies Group, Inc. - diluted	$	39,974	$	143,013	$	(327)
Denominator:
Weighted average shares of Class A common stock outstanding - basic	164,165		114,495		99,269
Effect of dilutive securities:
Restricted / performance stock units	339		308		—
Class B common stock	—		52,828		—
Weighted average shares of Class A common stock outstanding - diluted	164,504		167,631		99,269

Earnings (Loss) per share of Class A common stock - basic	$	0.24	$	1.11	$ (	0.00	)
Earnings (Loss) per share of Class A common stock - diluted	$	0.24	$	0.85	$ (	0.00	)

For the period from January 27, 2021 to December 31, 2021 and the year ended December 31, 2023, the reallocation of net income attributable to non-controlling interest from the assumed exchange of Class B common stock has been excluded along with the dilutive effect of Class B common stock to the weighted average shares of Class A common stock outstanding – dilutive, as they were antidilutive.